Poorly Built by Pulte No Different at Del Webb
Poorly Built by Pulte No Different at Del Webb
Poorly Built by Pulte No Different at Del Webb
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Tough Times for <strong>Pulte</strong> Homes<br />
The year 2008 will live in infamy for home builders.<br />
The Commerce Department reported another plunge in new home sales for December 2008, capping off the<br />
worst year since 1982. Bloomfield Hills, Michigan-based <strong>Pulte</strong> Homes Inc., builder of <strong>Pulte</strong>, <strong>Del</strong> <strong>Webb</strong> and DiVosta<br />
brand homes, reported th<strong>at</strong> “slower sales, higher cancell<strong>at</strong>ion r<strong>at</strong>es, and increased price discounts and sales<br />
incentives to <strong>at</strong>tract buyers” contributed toward net losses in every quarter since the fourth quarter of 2006.<br />
The dismal housing market has taken a toll on <strong>Pulte</strong>’s bottom line. <strong>Pulte</strong> lost $2.3 billion in 2007 and the<br />
company reports an additional net loss of $1.5 billion in 2008.<br />
Many factors have contributed to <strong>Pulte</strong>’s financial woes, most outside of its control. However, <strong>Pulte</strong> bears<br />
responsibility for persistent reports of poor construction quality and uns<strong>at</strong>isfactory customer service. Based on our<br />
our surveys, Arizona, Nevada and California <strong>Pulte</strong> and <strong>Del</strong> <strong>Webb</strong> homeowners are diss<strong>at</strong>isfied with their homes<br />
and frustr<strong>at</strong>ed <strong>by</strong> the builder’s response to their issues. Investors and home buyers should consider whether<br />
<strong>Pulte</strong>’s self-inflicted damage will affect the reput<strong>at</strong>ion of its brands beyond any housing market rebound.<br />
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